In some states that are rich in natural resources, such as oil, the law separates the right

Question:

In some states that are rich in natural resources, such as oil, the law separates the right to above-ground use of the land from the right to drill below ground (called “mineral rights”). Someone who owns both the above-ground rights and the mineral rights can sell the two rights separately. Explain how this division of the property rights enhances efficiency compared to a situation in which the two rights must always be sold together.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Macroeconomics

ISBN: 9781319098759

5th Edition

Authors: Paul Krugman, Robin Wells

Question Posted: